Munich Re Group Hits Record Profits with New Insurance Strategies
In 2025, Munich Re Group achieved a net profit of €6.121 billion, surpassing its original forecast of €6 billion and marking the fifth consecutive year of exceeding annual profit targets. Insurance revenue remained stable at €60.412 billion, bolstered by growth in life and health reinsurance and at ERGO, which offset planned reductions in property-casualty reinsurance and unfavorable currency impacts. The fourth-quarter net result was €945 million.
Munich Re's return on equity for 2025 was 18.3%, with earnings per share at €47.15. The Board of Management proposed a dividend of €24 per share, reflecting a 20% increase from the previous year. The solvency ratio climbed slightly to 298% from 287%. The total technical result for the year rose to €9.8 billion, while the investment result improved to €7.514 billion. Despite a decline in the currency result due to a weakened US dollar, the operating result increased to €8.876 billion, with equity rising marginally to €33.421 billion from €32.901 billion at the year's start.
The conclusion of the Ambition 2025 strategy saw Munich Re meeting or exceeding all its targets, including an increase in return on equity from 11.9% to 18.3%. The solvency ratio remained robust, while earnings per share and dividends experienced significant growth. One initiative focused on diversity in management achieved a rise in women in leadership roles to 40%, up from 35%, enhancing the organization's governance framework.
Munich Re introduced Global Specialty Insurance (GSI) as a new reinsurance segment in 2025, consolidating its global specialty primary insurance activities. The reinsurance segment's net result reached €5.204 billion, with insurance revenue at €38.731 billion. Despite strategic business reductions and adverse currency effects, the technical result in reinsurance increased to €7.518 billion, with the operating result reaching €7.471 billion. Major-loss expenditure notably decreased, particularly in natural catastrophes, where losses were lower than expected.
The life and health reinsurance segment met its technical result target with €1.715 billion, although the net result decreased slightly to €1.334 billion. In property-casualty reinsurance, the net result was €3.308 billion, and insurance revenue fell to €17.926 billion. The new Global Specialty Insurance segment recorded a net result of €562 million, with insurance revenue of €8.625 billion and an improved combined ratio of 85.9%.
In January 2026, reinsurance renewals saw business volume decrease to €13.7 billion, as Munich Re strategically opted not to renew business that failed to meet returns or terms conditions. Although there was a 2.5% decline in pricing, overall portfolio quality remained strong, aided by accurate risk management and price adjustments. The ERGO business posted a net result of €917 million in 2025, with improvements across insurance revenue and technical results.
Looking towards 2026, Munich Re aims for a net result of €6.3 billion and projected revenue of €64 billion, with return on investment expected to exceed 3.5%. Reinsurance targets include a segment result of €5.4 billion, maintaining a profitable combined ratio in property-casualty and Global Specialty Insurance. ERGO's results are anticipated to continue improving, supported by strategic enhancements in European property-casualty markets and solid performance in life and health segments, despite potential market uncertainties.